Vietnam Today

Socio-economic targets on track

The socio-economic situation in August and during the first eight months of the year continued to see positive movements, creating favorable conditions for the remaining months of the year and, barring any unforeseen circumstances, the reaching of the 14 targets set for 2015, Prime Minister Nguyen Tan Dung told the regular government meeting on year-to-date results and orientations for 2016 held on August 31 and September 1.

The PM said that the socio-economic situation in August and the first eight months was solid in almost all respects despite the complexities of the global economy, with falling oil prices, the devaluation of the Chinese Renminbi and other currencies, and wildly fluctuating stock markets.

Reports from ministries showed that Vietnam’s macro-economy remained stable and inflation was kept at a low rate, falling by 0.07 per cent in August. Credit in the economy had increased 9.3 per cent as at August 20. Total export turnover in the first eight months reached nearly $106 billion, an increase of 9 per cent year-on-year. State budget revenues rose more than 67 per cent, an increase of 7 percentage points against the same period last year, while FDI stood at approximately $13 billion, 30 per cent higher.

Most industries also continued to develop positively, especially manufacturing and processing. The Index of Industrial Production (IIP) rose 9.9 per cent in the first eight months, with manufacturing and processing increasing 10.4 per cent. Total retail sales and consumer services revenue increased 10 per cent during the eight months, indicating the continued recovery of purchasing power.

Vietnam’s economy, however, continues to face a host of difficulties and challenges as global crude oil prices remain unpredictable, restructuring continues to proceed at a tardy pace, and the implementation of Resolution No. 19 on improving the business investment environment and enhancing national competitiveness is yet to achieve the expected results. The production and consumption of agricultural products still experienced many difficulties, with agricultural prices in world markets on a downwards trajectory and impacting on the country’s exports.

Regarding tasks for the immediate future, the PM asked for greater effort to ensure macroeconomic stability and balance within the economy. “Inflation is not low, which allows for proactive control to facilitate economic development,” the Prime Minister told the gathering.

In 2016 the government targets GDP growth of 6.7 per cent, inflation of around 5 per cent, export turnover to increase by 10 per cent, and total investment in social development to rise around 31 per cent.